Khayah Cement Limited has voluntarily entered corporate rescue proceedings under the Insolvency Act [Chapter 6:07] to address its financial challenges and pave the way for a sustainable recovery.
The decision comes after a series of operational and financial setbacks, including significant equipment breakdowns, rising production costs, and market pressures. The company’s kiln, crucial for producing cost-effective clinker, was mothballed in 2023, leading to reliance on more expensive imported clinker.
These challenges, coupled with trade restrictions affecting key consortium members and the influx of cheaper imported cement following a government policy change in 2024, hampered the company’s ability to compete and meet creditor obligations.
Despite these hurdles, Khayah Cement has shown resilience, with promising growth in volumes and revenues driven by cost-containment measures, improved product quality, and strong market demand. The board believes that recommissioning the kiln, expected in the first half of 2025, will significantly reduce production costs and enhance profitability. With valuable assets, including land, equipment, and industry expertise, the company is optimistic about its prospects for recovery.
The corporate rescue process will allow Khayah Cement to restructure its operations, protect assets, and restore financial stability while continuing to provide quality cement to the market.
